The Year was 1939 and trouble was starting to brew around the world. In the United States was still reeling from the Great Depression, unemployment was around 17%. Hitler’s war machine of tanks started to roll over Poland. The die was cast for conflict. A global crisis was underway yet again, shortly after the war to end all wars, WWI as it was known back in that time, ended. Individuals and Governments were gearing up for action. Change the countries on the map, and it sounds very similar today.
Back in the States, a young trader was looking at all the chaos and decided this was a “point of maximum pessimism.” At the point of the maximum pessimism was an ideal time to buy. He decided to take action and invest $10,000 and buy $100 worth of shares in 104 companies, with shares prices trading under $1, approximately $22 today. Of those 104 companies, 34 were in bankruptcy, only four turned about to junk buys. In 1945 he sold those shares for around $40,000.
The initial investment actions- paved the way for that gentleman to become a billionaire. His name John Templeton. Who worked his way from a little town in Tennessee to Yale and Oxford, and later Wall Street. John Templeton was one of the founding fathers of Contrarian Investing. He later helped pioneer mutual funds. Although, I contest he would be rolling over in his grave if he saw what a racket they have become today. John Templeton was a master at recognizing asymmetric opportunities, at taking action on them.
Later he would be known as Sir John Templeton, after establishing the Templeton Prize which awards prizes for the advancement for sciences and humanity. In true investment kingmaker fashion he made the prize money nearly $1,500,000 , four times, the more famous Nobel Prize. The first recipient of this award was Mother Teresa. The Templeton has given out $1.95 billion since it’s inception.
I leave you with this my subscribers. We are in our point of maximum pessimism. Let us all take action and harness our inner Templeton and take some risks to that only comes once in a generation.
Let us remember one of his quotes “If you want to have better performance for than the crowd, you must do things differently from the crowd.” Instead of buy a traditional ETF, create your own ETF today.
Come sign on with ETF Stock Report and you get you asymmetric advantage today. https://etfstockreport.com/signin
Posted: June 30, 2022
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